The invention provides water-based fuel liquid as well as a preparation method and application thereof, and relates to the technical field of fuel preparation. The water-based fuel liquid is prepared from the following raw materials in parts by weight: 700 to 800 parts of water, 0.8 to 1.2 parts of nitrocellulose, 0.8 to 1.2 parts of glycerol, 0.6 to 1.5 parts of propylene glycol and 800 to 1100 parts of glycol. The preparation method comprises the following steps: filtering water, adding nitrocellulose while stirring, uniformly mixing glycerol and propylene glycol, pouring into water, stirring to a homogeneous phase, then adding glycol, uniformly stirring, standing and emulsifying to obtain the water-based fuel liquid. The water, the nitrocellulose, the glycerol, the propylene glycol and the ethylene glycol are adopted as raw materials to prepare the water-based fuel liquid, and the water-based fuel liquid is low in cost, low in carbon, environmentally friendly, high in flash point and incapable of being ignited with open fire, so that the water-based fuel liquid has the advantages of being safe, non-explosive, convenient to transport and high in fuel heat value which can reach 11000 kilocalories and is higher than natural gas, and therefore the water-based fuel liquid has more excellent combustion performance.